GDP growth at 20.1% in June quarter on low-base effect

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The Indian economy grew 20.1% during the April-June quarter of the current fiscal mainly on a low-base effect, according to data released by the Ministry of Statistics and Programme Implementation on August 31. The Q1FY22 GDP numbers are sharply higher against 1.6% growth in the previous quarter.

The GDP growth had nosedived to record 24.4% in the Q1FY21 when the government had imposed a strict nationwide lockdown at the onset of the Covid-19 pandemic. Due to various mobility curbs, the economic activity had come to a standstill.

While the second wave of the pandemic, which peaked during the first quarter of the current fiscal year, was deadlier than the first wave, partial mobility curbs gave some breather to the economic activities.

“GDP at Constant (2011-12) Prices in Q1 of 2021-22 is estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in Q1 of 2020-21, showing a growth of 20.1% as compared to contraction of 24.4% in Q1 2020-21. Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2021-22 is estimated at Rs 30.48 lakh crore, as against Rs 25.66 lakh crore in Q1 of 2020-21, showing a growth of 18.8%,” as per the data.

The GDP for Q1FY22 stood at Rs 32,38,020 crore in value terms, lower than Rs 35,66,708 crore in the corresponding period of the FY20, indicating that the economic growth is still below the pre-Covid levels.

Gross value added (GVA) growth in the manufacturing sector surged to 49.6% in the first quarter of 2021-22, compared to a contraction 36% a year ago, the official data showed.

Among the sectors that have not attained the pre-pandemic level include mining & quarrying, manufacturing, construction, hotels & transport and financial & professional services.